Will this raise red flags with Chase or will this count as a cash advance?

[thatguycx]

Okay so before, I've been helping out my friend with money every now and then via sending them money through either cashapp or PayPal. This was all done via my local credit union card and my Capital One Quick Silver card just because I want to avoid any possible red flags with Chase

My Chase card that I was auto-approved for about 2 months ago are new (the Sapphire Preferred), I got $1,500 left to spend before I can get the sign up bonus and I don't have much time left (about a month left).

Would it raise any red flags if I connected the CSP to PayPal or CashApp and sent my friend about a couple hundred or $1K? Not trying to churn or anything, I just figured I might as well earn some actual rewards if it don't raise any red flags or get charged cash advances.

[dragontears]

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@thatguycx wrote:

Okay so before, I've been helping out my friend with money every now and then via sending them money through either cashapp or PayPal. This was all done via my local credit union card and my Capital One Quick Silver card just because I want to avoid any possible red flags with Chase

My Chase card that I was auto-approved for about 2 months ago are new (the Sapphire Preferred), I got $1,500 left to spend before I can get the sign up bonus and I don't have much time left (about a month left).

Would it raise any red flags if I connected the CSP to PayPal or CashApp and sent my friend about a couple hundred or $1K? Not trying to churn or anything, I just figured I might as well earn some actual rewards if it don't raise any red flags or get charged cash advances.

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In the past people have been shut down for using PayPal to send family money in order to meet SUB, but some have not been caught doing it. 

[K-in-Boston]

As it's not linked to a purchase, it has a good probability of coding as a cash advance if you use the Send Money link in PayPal, and if so you would pay cash advance fees and the spending would not qualify toward SUB spending.

The following cash-like transactions will be treated as cash advances: purchasing travelers checks, foreign currency, money orders, wire transfers or similar cash-like transactions, purchasing lottery tickets, casino gambling chips, racetrack wagers or similar betting transactions, and making a payment using a third party service.

I found data points of that as recently as May.  Keep in mind that Chase and PayPal recently entered into an integration partnership as well, so the full data of your transaction may be visible to Chase.  There would be no issues with using PayPal to pay for an eBay purchase or at one of the numerous merchants that accept PayPal for payment.

[Remedios]

Yes, it will. If you want to keep the card, don't don't do it. 

Also, peer-to-peer transactions are frequently coded as cash advances.

You don't earn rewards, you pay the fee, and then you hope they don't close the card. 

[Anonymous]

With Chase I think you're going to want to keep it to traditional organic spend. I've not seen any good DP's with using it on Plastiq for example,  as it often codes as Cash Advance. If you're coming up that short with no spend before the time runs out you might consider buying a ticket to somewhere you want to go, only make sure ithe itenerary is changeable. If you're one who travels that is.

Otherwise i don't know what you could do without buying something just to meet the SUB.

[K-in-Boston]

One legitimate option for meeting a SUB if you don't have the organic spend would be prepaying utilities.   Many electric, gas, phone, mobile phone, and cable bills can be paid months in advance.

[addicted_to_credit]

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@K-in-Boston wrote:

One legitimate option for meeting a SUB if you don't have the organic spend would be prepaying utilities.   Many electric, gas, phone, mobile phone, and cable bills can be paid months in advance.

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This is an excellent option IMO in fact this is exactly what the DGF does. Sound advice @K-in-Boston!

[Remedios]

OP is working on two SUBs because "app spree"

You can prepay as suggested above, but CSP doesn't have intro 0% promo, so don't do that if you cannot pay it back. 

At 22.99% apr, it will eat into your SUB quickly.

You still have one full month to complete minimum spend required for SUB. 

Use it for bills, groceries, etc, everything you can. Once it gets down to crunch time, you will know if you need to pre-pay bills, but more importantly, you will know exactly how much you need to pre-pay.

Use spend analyzer in your account to keep track of your spending. 

If you rent, check to see if you can pay via card. There might be a fee, but it's probably going to be less than interest.

Also, to get a clean slate from Chase interest wise, it takes a while. 

They are even subject of class action lawsuit over this, you should make every attempt to avoid not paying in full this particular card 

https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSL2N23B1SU

As far as friend goes, "There is no spoon".

This works better when we are honest. 

Chase won't play that game, and given the recency of your approval, combined with multiple applications (your Amex will report soon) avoid brining attention to your account. 

[Jetiquette]

Definitely DO NOT do that. Use it for rent, bills, groceries, etc. Go to the store and buy gift cards for gas/groceries/etc that you know you will eventually spend on necessities. 

[Face_Value]

 I would not suggest buying gift cards to meet spending requirements. I have seen several posts and videos blaming doing this on getting their accounts closed. Accounts closed for "not using card as intended"